Econ 70 Fall 2004

chapter 7 homework answers

For #34, the textbook includes a correction for the fact that we are drawing a sample out of a finite population. This is seldom an important concern in empirical work, but it does make a little difference.

Hypothesis Tests

Using a 5% Type I error probability, we calculate the rejection region.

The probability of a Type II error depends on the specific value of the unknown parameter under the alternative hypothesis.

Conducting the test with n = 100 is not likely to be very useful in close elections.